House price growth has remained steady in February 2025, according to the latest Nationwide House Price Index.
This spells good news for homeowners looking to sell their properties after the Christmas period, which saw a brief respite in buying interest.
The newest data found that the annual rate of house price growth remained “solid” in February, at 3.9 per cent compared with 4.1 per cent in January.
As for month-on-month change, house prices saw a modest 0.4 per cent growth.
This was a jump from the 0.1 per cent increase in January 2025, as reported in Nationwide’s previous House Price Index.
Nationwide’s Chief Economist, Robert Gardner, commented that February’s growth signified the “sixth consecutive monthly gain – after taking account of seasonal effects”.
He added: “Housing market activity has also remained resilient in recent months, despite ongoing affordability challenges.
“Indeed, the second half of 2024 saw a noticeable pick up in total housing transactions, which were up 14 per cent compared with the same period in 2023.”
The UK housing market is still somewhat reeling from the pandemic, with transactions six per cent lower than in 2019.
However, “first-time buyer activity continues to recover, with mortgage completions in 2024 just five per cent below 2019 levels”.
Industry experts weighed in on what the latest House Price Index means for the UK market.
Director of Benham and Reeves, Marc von Grundherr, commented:“A consistently positive performance has been the theme for the UK property market over much of the last year and this theme has so far continued in 2025.
“House prices may not be climbing at the same rate as previous market peaks, but some may argue that this more measured rate of growth is far healthier for the market, particularly when you consider that first-time buyer activity is on the up, despite the fact that this market segment faces the toughest task with respect to affordability.”
CEO of estate agents Yopa, Verona Frankish, commented: “The UK property market has begun the year on the front foot and we’re now seeing the rate of house price growth start to accelerate, as more buyers push on with their plans to purchase following a brief respite over the Christmas period.
“A degree of this increased activity in recent months has, of course, been spurred by the impending stamp duty deadline at the end of March, with those making their move keen to reach completion and avoid any increased cost when buying.
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House prices saw a 0.4 per cent month-on-month growth in February
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“However, we’ve seen the vast majority of buyers take the potential stamp duty cost increase into consideration before submitting their offers, so whilst there may be a momentary market correction, we expect momentum to continue building beyond April 1.”
Stamp duty in England and Northern Ireland is changing from April 2025. Currently, no stamp duty is due on the first £250,000 of a main residential property for non-first-time buyers.
However, the change will see a lower threshold, with buyers forking out two per cent in stamp duty for properties between £125,001 and £250,000.
For those looking to sell their homes in 2025, homeowners are warned of property errors that can put buyers off “immediately”.
